Should You Trade In Your Phone?

Not sure whether to hang on to your phone or trade it in? Timing is key. 

If you hold on to your phone for too long, you’ll decrease its potential trade-in value. If you turn it in too soon, you’ll enter into another (often pricy) phone installment contract—and potentially get a phone that doesn’t offer meaningful advancements over what you currently have.

In this article, we’ll unpack all of the factors to consider when deciding whether to trade in or keep your phone, so you can make an informed decision. 

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How Carriers Determine Trade-In Value

The carriers use certain metrics to determine a phone’s trade-in value. These are the three main ones to be aware of. 

Condition 

Generally speaking, phones that are free from damage (like a cracked screen or body) and in good working order (powering on) will fetch the highest prices. However, occasionally, carriers will accept trade-ins in any condition. 

Model

Carriers pay higher prices for flagship model phones, especially iPhones and Samsung Galaxy devices. That’s because the resale market for these handsets is stronger than other brands. 

Age

Newer devices tend to yield the highest trade-in prices, but there’s far more to the story—we’ll explain more about “trade-in cliffs” below. 

The Case for Trading In

It turns out there are some compelling arguments for trading in your phone. These are the most important ones. 

Timing Equals Value

The idea of holding on to your phone for as long as possible sounds like good financial advice. However, when you look closer, it turns out that’s not always the case. 

If your phone is two to three years old and you're eyeing an upgrade, there's a compelling financial argument to move sooner rather than later. Trade-in values depreciate quickly, and carrier promotions can offer anywhere from $400 to over $800 in credit—but only if your device qualifies.

Carriers structure their promotional trade-in offers around what are essentially eligibility cutoffs. A device that qualifies for $830 in credit today might only fetch $350 once the next phone generation launches—not because it stopped working, but because it crossed a threshold in the carrier's pricing model. These sharp drop-offs can cost you hundreds of dollars if you wait just one upgrade cycle too long.

Technology 

Depending on how many generations have passed since your last phone purchase, a new device may offer meaningful tech upgrades. 

I recently upgraded from an iPhone 14 Pro to an iPhone 17 Pro. I use my phone constantly in my personal and professional lives, and the new tech features in the new device have been significant—even, in a way, life-changing. 

For one, the battery life in my new phone is a massive improvement—I’m not constantly looking for a socket to recharge my phone. Two, the camera features have allowed me to snap much better photos. Lastly, I’m finding that I’m getting much better cell phone coverage with my new device. A little known fact about new smartphones is that they tend to come packaged with compatibility to the latest network bands, so you can stay connected more reliably. My speeds have been noticeably faster—and more constant—with my iPhone 17 Pro. 

The Case for Keeping Your Phone

Despite the strong case for trading in your phone within a certain timeframe, there are also some good reasons to hold onto it longer.

Financial

The most obvious reason to hold onto your phone is financial—especially if it’s paid off.

A paid-off phone is a phone that costs you nothing each month. Once you trade in and upgrade, you're back on an installment plan for a device that could run $800 to $1,200 or more for a flagship model. If your current phone does everything you need it to do, that's a hard expense to justify.

Technology 

Another case for keeping your phone is that you might not be missing out on much by deciding not to upgrade. As smartphones have become increasingly sophisticated, the technological upgrades from generation to generation have gotten increasingly modest. The technology gap between an iPhone 16 and an iPhone 17, for example, is far less than the one between an iPhone 8 and iPhone X. The same goes the recent generations of Samsung Galaxy and Google Pixel phones.  

Also, modern phones are also built to last longer than they used to be. Software support from both Apple and Google now extend five to seven years, meaning a phone you bought three years ago may still be receiving security updates and new features for years to come.

How to Think About the Decision

The smartest way to approach this is to think about the total cost of ownership rather than the monthly payment. Holding a phone for an extra year looks like savings on the surface, but if doing so drops your trade-in eligibility by $400 or $500, the math may not work in your favor.

That’s why it’s smart to evaluate your options around the 1-2 year mark after purchasing a phone. That tends to be the window when trade-in values are still high, carrier promotions are most accessible, and the new generation of devices offer enough of an upgrade to feel meaningful. Waiting until year three or four may mean absorbing both the depreciation in your old phone's value.

It also pays to shop around. Carrier trade-in values vary significantly for the same device, so comparing offers from AT&T, Verizon, and T-Mobile before committing can make a real difference in what you walk away with.

Final Thoughts 

In the end, there’s no one answer to the question of whether or not to trade in your phone. If your device is still performing well and fully paid off, holding onto it is often the simplest way to keep your monthly costs down. However, if you’re within that one-to-two year window and can take advantage of a strong trade-in promotion, upgrading at the right moment can actually save you money in the long run.